Government expenditure and economic growth in Zimbabwe: an ARDL-bounds testing approach Online publication date: Sat, 28-Jun-2014
by Kunofiwa Tsaurai; Nicholas M. Odhiambo
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 6, No. 1, 2013
Abstract: In this study, we examine the causal relationship between government expenditure and economic growth - using the recently developed ARDL-bounds testing approach. The causal relationship between government expenditure and economic growth has been a subject of extensive debate in recent years. Currently, there exist three views regarding the relationship between government expenditure and economic growth. The first view maintains that it is government expenditure that drives economic growth. The second view argues that it is economic growth that spurs government expenditure. The third view maintains that both government expenditure and economic growth promote one another. The results of our study show that there is a unidirectional causal flow from economic growth to government expenditure. This applies both in the short run and in the long run. The causal flow from government expenditure to economic growth, however, could only be detected in the short run.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economic Policy in Emerging Economies (IJEPEE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook